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5 Tax Tips for Property Investors


Whether you own a home, rented an apartment or you are a property investor, your investment can offer you significant tax deductions. There are many ways through which property investors can save on property tax. Here are the five best tax tips that every property investor can follow to save at tax time.

1. Employ a great accountant 

It is vital to take help from an experienced accountant to save on property tax. An accountant will guide you on which property purchases and any deductions you can claim in tax returns. However, not all accountants are familiar with property investing, so you should consider engaging a qualified and specialised tax accountant as they will know about the latest tax regulations in your state. Hiring the right accountant can help you save thousands of dollars on property tax.


2. Prepay rental expenses 

If you own a rental property, you can pay your rental costs like insurance, maintenance and advertising fees in advance. Paying your rental expenditures in advance helps you to increase your income tax at the end of each financial year. Contact a tax accountant to know more about conditions and pay the expenses in advance to save on property tax.


3. Claim on holiday homes

A holiday rental property can be an attractive investment for many tax payers. Many investors are interested in holiday rental properties due to higher rental income, growth in the value of the property, and many other tax deductions. Tax deduction claims for a holiday rental property include maintenance costs, advertising cost, insurance and depreciating assets. However, you cannot claim the tax deductions if you are using the house for personal holidays or expenses.


4. Landlord maintenance deductions

It is the responsibility of the landlord or real estate agency to make sure that the property you rent is in a good condition, and suitable for living. You may need to fix items that need repair from time to time. This enables you to claim any repairs made on your rental property. However, if you replace an item, you can claim the tax only in case the item is not repairable, but it is essential for the property.


5. Be smart with capital gains tax

If you are thinking of selling your investment property, you must be aware of the Capital Gains Tax (CGT)  implications. As an investor, you need to pay the capital gains tax on the profit you are making from your property. If you own a property for a year or more, you can immediately get a 50 percent reduction in its cost. You cannot claim tax back  on it  however, you can wait for a few months to take advantage of the expected price rise. Property investment information is vital for buying and selling of properties.

The points mentioned in this post are the top tax tips for property management and investment. There are many ways you can save money on your property. Focusing on the some of the ideas above and not all is the key to saving you money when it comes to property tax.

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Topics: Property Services, Property Management Advice, Home Improvement, Inspo, Property Advice

Rafael Niesten

Written by Rafael Niesten

In his early 20s, Perth local Rafael Niesten, won a scholarship to study in Canada, with that came the opportunity to volunteer at a local radio station. That spawned his entrepreneurial streak, returning to Perth in 2001 he set up community radio Groove FM. More by luck than design, they became successful, too successful as they took a significant chunk of the Perth Market. This sent up the red flag with his commercial competitors who saw to it that he came before the Australian Broadcasting Authority and on technicalities such as the number of volunteers he was forced to move on. He received the citizen of the year award for Western Australia (youth) and was a finalist in the Australian of the year awards (Youth). Falling on his sword he turned to running small and large scale events, all the while buying, renovating and selling properties. Buying and selling land and renovated houses provided a grounding in the property industry. He founded a cloud based medical grade voice recognition company, followed by co founding the first true cloud application for private practice in the health sector. He successfully exited these ventures at the end of 2016 and began building Bricks+Agent.

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